Domain escrow explained: how to pay safely
Escrow protects both sides of a domain sale: the buyer's money is held by a third party until the domain has been transferred.
The usual steps
Using Escrow.com's published process as an example:
- Agree the deal. Buyer and seller agree the price, who pays the fee, and the inspection period.
- Buyer pays the escrow service. The service confirms the money has arrived.
- Seller transfers the domain. This might be a push within the same registrar or a transfer using an auth code.
- Buyer checks it. During the inspection period, the buyer confirms the name is in their account and under their control.
- Money is released to the seller.
Tips for buyers
- Only confirm receipt when the domain shows in your registrar account, not when you are told it has been sent.
- Change the contact details and nameservers straight away.
Tips for sellers
- Do not transfer anything until the escrow service itself (logged in on its real website) confirms the money is secured. Do not rely on an email that says so.
Watch for fake escrow sites
A common scam is a convincing copy of an escrow website suggested by the other party. Always type the escrow company's address yourself, and be wary if someone insists on a service you have never heard of. If you lose money, report it to Report Fraud. See our guide to domain scams.
We mention Escrow.com because its process is well documented. Other escrow services and marketplaces with built-in payment protection exist. We have no commercial relationship with any of them.
Sources
- Escrow.com – How domain name escrow works
- Escrow.com – Inspection period
- Report Fraud – police reporting service
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